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BlackRock's Q4 Earnings Top on AUM Growth, Higher Revenues, Stock Up

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BlackRock’s (BLK - Free Report) fourth-quarter 2024 adjusted earnings of $11.93 per share surpassed the Zacks Consensus Estimate of $11.44. The figure reflects a rise of 23.5% from the year-ago quarter.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Shares of BLK are trending almost 2.8% higher in the pre-market trading session today on the back of solid improvement in assets under management (AUM) balance, which drove the quarterly performance.

The results benefited from a rise in revenues. AUM witnessed robust growth and touched the $11.55 trillion mark driven by net inflows, partially offset by market depreciation and negative forex impact. However, higher expenses and lower non-operating income acted as a headwind.

Net income attributable to BlackRock (on a GAAP basis) was $1.67 billion, increasing 21.5% from the prior-year quarter. We had projected the metric to be $1.65 billion.

For 2024, adjusted earnings per share of $43.61 climbed 15.5% on a year-over-year basis and beat the consensus estimate of $43.02. Net income attributable to BlackRock (on a GAAP basis) was $6.36 billion, up 15.8%.

On Oct. 1, 2024, BlackRock completed the acquisition of Global Infrastructure Partners, contributing $69.88 billion to AUM.

BLK’s Revenues Improve, Expenses Rise

Revenues (on a GAAP basis) in the quarter were $5.7 billion, beating the Zacks Consensus Estimate of $5.6 billion. The figure also increased 22.6% year over year. The rise was driven by an increase in all revenue components.

For 2024, revenues (GAAP basis) rose 14.3% to $20.41 billion. The top line surpassed the consensus estimate of $20.31 billion.

Total expenses amounted to $3.60 billion, up 18.3%. The uptick was due to a rise in all cost components except for restructuring charges. Our estimate for the metric was $3.39 billion.

Non-operating income (on a GAAP basis) was $28 million, declining 91.8%. Our estimate for non-operating income was $296.1 million.

BlackRock’s adjusted operating income was $2.33 billion, climbing 35.5% from the prior-year quarter.

BlackRock’s AUM Balance Up

As of Dec. 31, 2024, AUM totaled $11.55 trillion, reflecting a year-over-year rise of 15.4%. Our estimate for AUM was $11.75 trillion. The company witnessed long-term net inflows of $200.7 billion in the reported quarter.

As of Dec. 31, 2024, the average AUM of $11.56 trillion rose 23.1% year over year. We had projected the average AUM to be $11.61 trillion.

BLK’s Share Repurchases

BlackRock repurchased shares worth $1.6 billion in 2024.

Our View on BlackRock

BLK’s continued efforts to diversify its offerings and improve its revenue mix are expected to support its financials. The acquisition of Global Infrastructure Partners and the planned buyouts of Preqin and HPS Investments are expected to bolster the company’s position as a global asset manager.
 

BlackRock, Inc. Price, Consensus and EPS Surprise

BlackRock, Inc. Price, Consensus and EPS Surprise

BlackRock, Inc. price-consensus-eps-surprise-chart | BlackRock, Inc. Quote

BlackRock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Dates & Expectations of BLK’s Peers

Invesco (IVZ - Free Report) is scheduled to announce fourth-quarter and full-year 2024 numbers on Jan. 28.

Over the past week, the Zacks Consensus Estimate for IVZ’s fourth-quarter 2024 earnings has been revised 2% upward to 51 cents. Also, the figure implies an increase of 8.5% from the prior-year reported number.

T. Rowe Price Group, Inc. (TROW - Free Report) is slated to report fourth-quarter and full-year 2024 results on Feb. 5.

Over the past week, the Zacks Consensus Estimate for TROW’s fourth-quarter 2024 earnings has been revised 1.8% upward to $2.27. The figure indicates 32% growth from the prior-year quarter.


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